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Profiting off of CHIP Bungling


by: Ryan Goodland

Thu Oct 26, 2006 at 05:00 PM CDT


As Kuff reported earlier today, Carole Strayhorn's office recently released an audit of Accenture, the company the newly elected GOP-majority in 2003 tasked to manage enrollments for the Children's Health Insurance Program. The way the contract is set up, Accenture gets to profit from making mistakes on applications. From the comptroller's report:

Accenture is paid when applications are completed and ready for the state’s final determination. Accenture also is paid, however, when applications “time out” because clients have not submitted sufficient information for processing. These applications are sent to the state for denial, and Accenture is paid the same rate as for completed applications. This payment structure does not provide Accenture  with any incentive to seek necessary information from clients before their applications time out.

Accenture, incidentaly, is currently profiting by more than twenty million dollars than their contract limits state. State Representative Garnet Coleman had some tough words about the report:

"They're being paid for their mistakes, and our children are the ones footing the bill," Rep. Coleman said. "It's disgusting. It's outrageous. It's unacceptable."

Accenture's mistakes do verge on downright criminal, but it's important to note, as Kuff points out, Accenture isn't the cause of CHIP enrollment bungling since 2003; it's the effect of policies the governor and legislature passed. And the first step towards fixing the screw-ups of 2003 is to make sure we have a legislature and governor next year for whom children's health insurance is a priority.

It's important everyone understands the facts: Governor Perry and Republicans made enrolling children in CHIP more difficult, the HHSC reported that the main reason children are dropping off the CHIP rolls is because of the difficulty of the enrollment process, and Accenture profits from every re-submittal of CHIP applications.

CHIP is a major issue this election cycle. In North Texas, this television ad from the SEIU puts a face on the CHIP crisis:

A Spanish-language version of the video can be viewed below.

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Great post, Ryan (0.00 / 0)
Excellent post -- and Vince and Charles did a terrific job as well. Issue posts never generate a lot of comments, even though issues are ten times more important than poll numbers...

This is the number one health care issue right now, and it is the clearest destinction between Democrats and Republicans: Democrats want to invest in making sure children are healthy. Republicans don't care if children are sick -- they'd rather save the money for tax cuts for big business and the wealthiest Texans.

Now, a very great man once said that some people rob you with a fountain pen.


Not just bungling of applications, but... (0.00 / 0)
This is also bungling and/or malfeasance that happened when the contract was written. Our Department of Children and Families (in Florida) went through the same sort of thing with a contract with EDS, and ended up in court.

When the bureaucrats can't be bothered to read the contracts they sign, the people are the ones stuck for the bill!


Great ad, great issue (0.00 / 0)
The CHIP cuts have become emblematic of GOP greed and misplaced priorities.  Three years later, they are still driving turnout and reminding voters of what happens when zealots control government.

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